Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/59218

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DC Field

Value

Language

dc.contributor.author

Fortune, Peter

en_US

dc.date.accessioned

2006-07-24

en_US

dc.date.accessioned

2012-06-20T16:09:36Z

-

dc.date.available

2012-06-20T16:09:36Z

-

dc.date.issued

2005

en_US

dc.identifier.uri

http://hdl.handle.net/10419/59218

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dc.description.abstract

This study's underlying premise is that current pension plan accounting has two important negative effects. First, it distorts the measurement of earnings and net worth in the short run, as well as the pattern of earnings over future periods. Second, this distortion can send incorrect signals to investors about a firm's health, resulting in the mispricing of a firm's outstanding debt and equity instruments. The author demonstrates how these distortions are introduced, examines the magnitude of the distortions, and discusses proposals for reform.